The Pros and Cons of Outsourced Engineering Services

Many firms have begun to outsource engineering services to reduce expenses and increase overall capability. In this blog we outline the major pros and cons of choosing outsourced engineering.

Pros of Outsourced Engineering Services

  • Reduction in Overhead Costs: One of the most significant advantages of outsourcing is reducing cost. According to Industry Week, labor costs can decrease 30-50% and other investment costs can decrease dramatically for firms that choose to outsource to engineering service providers. This can allow a company to dedicate its revenue to core competencies and other essential functions.
  • Access to Resources: When a business utilizes an engineering service provider, they gain access to some of the most sophisticated technologies and highly trained engineers. Engineering service providers are dedicated to keeping their technologies and staff up-to-date, and firms can take advantage of these resources without the big investments.
  • Quicker Turnaround: Engineering service providers are designed to create specific solutions for their clients, so they have the ability to implement projects quickly and efficiently. Meeting deadlines for their customers is of the utmost concern, and they have the amount of engineers on hand needed to make it happen.
  • Increased Flexibility: Outsourcing can give your company the flexibility to use engineering resources only when you need them, and avoid investing in permanent solutions to temporary needs. With extra help, your company also has the flexibility to take on more projects and expand your client base.
  • Greater Focus: Because engineering service providers are used for specific projects, all of their resources are focused on getting that job done. Where a company has multiple needs and projects at one time, an outsourcing method will help the firm shift its efforts to other critical tasks. This will in turn increase customer satisfaction across all segments of the business.

Cons of Outsourced Engineering Services

  • Lack of Trust: Your business is important to you, and it can be challenging to trust that an outsourced firm will put as much effort into your solutions as you would. This is why hiring the right engineering firm is crucial.
  • Loss of Control: The fear of losing control and oversight is another disadvantage of outsourcing engineering services. Firms want to have control over every aspect of their business, and using an outsourced provider puts an important project in the hands of someone else. Express this concern with the partner you choose. Sometimes it is feasible to hire contract work in-house, so you can still be hands-on in the project and overlook the process.
  • Concern about Quality: With outsourcing, there is concern that the provider will not meet expectations when it comes to the quality of designs or completion time. If a provider does not meet these expectations, the rest of the business could suffer. If you’re unsure about the quality or experience of an engineering firm, ask to see case studies and examples of their performance.

There are many pros and cons to outsourcing engineering services. However, many of the disadvantages can be minimized or completely eliminated by carefully choosing a provider. A trusted provider will make sure that your expectations are met, and will work diligently to ensure that you are satisfied. With a great provider, the pros of outsourcing engineering services far outweigh the cons.

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